Corsa Coal Corp. (TSXV: CSO), a premium quality metallurgical coal producer, today reported financial results for the three and nine months ended September 30, 2018. Corsa has filed its unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2018 and 2017 and related management's discussion and analysis under its profile on www.sedar.com.

Unless otherwise noted, all dollar amounts in this news release are expressed in United States dollars and all ton amounts are short tons (2,000 pounds per ton). Pricing and cost per ton information is expressed on a free-on-board, or FOB, mine site basis, unless otherwise noted.

Third Quarter Highlights

• Corsa reported net and comprehensive loss from continuing operations of $1.5 million, or $0.02per share, for the third quarter 2018, compared to net and comprehensive income from continuing operations of $7.5 million, or $0.07 per share, for the third quarter 2017. Net and comprehensive loss from continuing operations for the third quarter 2018 includes $6.7 millionof amortization expense of which $2.7 million, or $0.03 per share, resulted from the asset impairment reversal that took place in December 2017.
• Corsa's adjusted EBITDA(1) was $9.9 million and $8.5 million at its Northern Appalachia division ("NAPP" or "NAPP Division") and on a consolidated basis, respectively, for the third quarter 2018. Corsa's EBITDA(1) was $9.5 million and $6.9 million at its NAPP Division and on a consolidated basis, respectively, for the third quarter 2018.
• Operating cash flows provided by continuing operations for the third quarter 2018 were $6.5 million, which was consistent with operating cash flows for the third quarter 2017.
• Total revenue from continuing operations was $61.6 million for the third quarter 2018, a decrease of 2% as compared to the third quarter 2017. The decrease in revenue was attributable to the expiration of a thermal coal contract in December 2017.
• Corsa sold a total of 455,525 tons of metallurgical coal in the third quarter 2018. On a year-to-date basis, low volatile metallurgical coal sales volumes are up 17% versus 2017 comparable period levels, and total metallurgical sales volumes are up 22% as compared to year-to-date September 2017. This growth has been accomplished despite supply chain disruptions to export terminals and rail service.
• Corsa achieved an average realized price per ton of metallurgical coal sold(1) at its NAPP Division of $106.99 for all metallurgical qualities in the third quarter 2018. This average realized price is the approximate equivalent of $151 to $157 on an FOB vessel basis(2). For low volatile metallurgical coal sold, Corsa achieved the approximate equivalent of $157 to $162 on an FOB vessel basis(2). Corsa's sales mix for the third quarter 2018 included 40% of sales to domestic customers and 60% of sales to international customers.
• Cash production cost per ton sold(1) was $77.94 for the third quarter 2018, a decrease of $15.52per ton as compared to the second quarter 2018. Cash production cost per ton sold(1) increased $7.65 per ton, or 11% as compared to the third quarter 2017.
• Corsa is at an advanced stage on discussions and expects to refinance or extend the maturity of our term loan beyond the August 2019 maturity date.

George Dethlefsen, Chief Executive Officer of Corsa, commented, "In the third quarter of 2018 we began to realize returns on the investments made during the first half of the year, and we believe these investments will yield further improvement in the quarters ahead. Overall, our cash mining costs per ton sold(1) were down 16% in the third quarter 2018 compared to first half 2018 levels. This improvement in cash mining costs per ton sold(1) in the third quarter of 2018 was the result of experiencing more favorable geology and putting in service newly rebuilt mining equipment at the Casselman mine. At the Acosta mine, we achieved full production levels and achieved our highest quarterly production rate since beginning the mine.

Low volatile metallurgical coal remains in very high demand both domestically as well as internationally as steel and coke prices remain profitable for producers. Supply disruptions in the United States and Australia have created a fragile supply situation for metallurgical coal and specifically for the low volatile metallurgical coal that we produce. Pricing on the US East Coast is at one-year highs and Australian spot prices are up approximately $35.00 per ton, or 20%, since the beginning of the third quarter. The forward pricing curve now averages around $200 per metric ton FOB Vessel for all of 2019. This uptick in pricing is expected to positively impact Corsa's fourth quarter 2018 earnings as well as 2019 earnings. Port congestion on the US East Coast has improved significantly, which will serve to substantially reduce demurrage expenses in the coming quarters.

With the challenging geology at Casselman behind us, the ramp up at Acosta complete, the newly rebuilt underground mining equipment in service, the future reduction in demurrage expense and the increase in pricing we expect further increases in Adjusted EBITDA in the fourth quarter. We are providing guidance for the fourth quarter 2018 of $11 - $13 million of Adjusted EBITDA. We expect higher average realized prices and margin expansion to continue through the fourth quarter of 2018 and into 2019, leading to strong free cash flow generation in the quarters ahead.

We continue to aggressively pursue volume growth, given the attractive returns profile of our organic projects. In the quarter, we upgraded our equipment at the Horning mine, which is now producing a low ash, low sulfur metallurgical coal that is very strategic in our Sales & Trading platform. Additionally, in the quarter, we upgraded mining equipment at our Casselman and Acosta mines. We continue to await the issuance of the mining permit for our Keyser project and expect this to be received later this year. Finally, we have had success drilling around our flagship Casselman mine and expect to significantly increase the reserve life of that mine.

The Company is well positioned for the quarters ahead. Our face mining equipment rebuild initiative is complete and fully funded, we foresee favorable geologic conditions at our mines and the supply-demand balance for metallurgical coal remains favorable for metallurgical coal producers. We are well advanced in constructing our sales order book for 2019, having achieved price increases for our domestic orders and building a diversified international customer base with price exposure to both Australian and US-linked indices. Corsa's customer relationships, preparation plant infrastructure, rail access and coal storage capacity allow for full participation in the seaborne market and significant operating leverage to the rising price environment."

Information about Corsa

Corsa is a coal mining company focused on the production and sales of metallurgical coal, an essential ingredient in the production of steel. Our core business is producing and selling metallurgical coal to domestic and international steel and coke producers in the Atlantic and Pacific basin markets.